Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2013

Atlantic American Corporation Reports Fourth Quarter and Year End Results for
2013
oNet income of $11.0 million in 2013 up from $4.4 million in 2012
oRealized investment gains, net of $8.7 million in 2013 up from $1.4
million in 2012
oDiluted earnings per share of $0.48 per share in 2013 up from $0.18 per
share in 2012
oEarned premiums up 14.9% in 2013 as compared to 2012
ATLANTA, March 24, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported its results for the fourth quarter and year ended
December 31, 2013. For the fourth quarter ended December 31, 2013, the Company
reported net income of $1.5 million, or $0.06 per diluted share up from $0.9
million, or $0.04 per diluted share in the fourth quarter of
2012.Significantly all of the increase was attributable to realized
investment gains.Premiums for the fourth quarter of 2013 increased 18.0% to
$37.9 million compared to $32.1 million for the fourth quarter of 2012, as
premiums in the property and casualty operations increased by $3.8 million, or
44.1%.
Atlantic American reported net income for the year ended December 31, 2013 of
$11.0 million, or $0.48 per diluted share, as compared to net income of $4.4
million, or $0.18 per diluted share, for the year ended December 31, 2012.
Total premiums during 2013 increased 14.9% to $145.6 million from 2012
premiums of $126.7 million, as premiums in the life and health and property
and casualty operations increased 11.8% and 22.4%, respectively, in 2013 as
compared to 2012.
Commenting on the results, Hilton H. Howell, Jr., chairman, president and
chief executive officer, stated, "We have completed another successful year
for our Company with net income of $11.0 million.We experienced significant
premium growth during 2013 in both our life and health operations as well as
our property and casualty operations which permitted us to continue making
investments in not only our worksite product line and our internet and social
media initiatives, but also complete an acquisition which should expedite our
ability to introduce new products.In addition, a significant portion of our
net income was from realized investment gains, as we have been successful in
repositioning our investment portfolio to significantly shorten the average
maturity.While such action immediately impacts our investment income returns,
it better postures us for that future time when interest rates do begin to
rise. We continue to be optimistic for the future and again this February,
our Board of Directors approved our 3^rd annual dividend of $0.02 per share to
shareholders of record on March 27, 2014."
Atlantic American is an insurance holding company involved through its
subsidiary companies in specialty markets of the life, health, and property
and casualty insurance industries.Its principal insurance subsidiaries are
American Southern Insurance Company, American Safety Insurance Company,
Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance
Company.
Note regarding forward-looking statements:This news release contains
forward-looking statements subject to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.These forward-looking
statements may relate to, among other things, our future strategies, operating
or financial performance.Forward looking statements are based on management's
assumptions regarding, among other things, general economic and
industry-specific business conditions, as well as the execution of our
business strategy.Actual results could differ materially from those indicated
by such forward-looking statements due to a number of factors and risks,
including those detailed from time to time in statements and reports that
Atlantic American Corporation files with the Securities and Exchange
Commission.
Atlantic American Corporation
Selected Financial Data
Three months ended Year ended
December 31, December 31,
(Unaudited; In thousands, except per 2013 2012 2013 2012
share data)
Insurance premiums
Life and health $25,420 $23,458 $99,779 $89,272
Property and casualty 12,433 8,631 45,851 37,471
Investment income 2,596 2,886 10,809 11,504
Realized investment gains, net 326 6 8,741 1,434
Other income 49 41 189 147
Total revenue 40,824 35,022 165,369 139,828
Insurance benefits and losses
incurred
Life and health 16,561 15,652 70,175 62,480
Property and casualty 8,664 6,109 30,197 27,337
Commissions and underwriting 10,475 8,512 40,556 32,477
expenses
Interest expense 441 655 1,898 2,632
Other 3,240 2,542 11,337 9,820
Total benefits and expenses 39,381 33,470 154,163 134,746
Income before income taxes 1,443 1,552 11,206 5,082
Income tax expense (benefit) (17) 638 184 646
Net income $1,460 $914 $11,022 $4,436
Basic earnings per common share $0.06 $0.04 $0.50 $0.19
Diluted earnings per common share $0.06 $0.04 $0.48 $0.18
Reconciliation of Net Income to
non-GAAP Measurement
Net income $1,460 $914 $11,022 $4,436
Income tax expense (benefit) (17) 638 184 646
Realized investment gains, net (326) (6) (8,741) (1,434)
Operating income $1,117 $1,546 $2,465 $3,648
December 31, December 31,
Selected Balance Sheet Data 2013 2012
Total cash and investments $262,063 $265,843
Insurance subsidiaries 228,605 236,934
Parent and other 33,458 28,909
Total assets 319,381 320,177
Insurance reserves and policyholder 162,373 154,558
funds
Debt 41,238 41,238
Total shareholders' equity 100,927 105,736
Book value per common share 4.47 4.65
Statutory capital and surplus
Life and health 34,530 33,059
Property and casualty 39,092 36,947
CONTACT: John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation
404-266-5501
Hilton H. Howell, Jr.
Chairman, President & CEO
Atlantic American Corporation
404-266-5505